Translation to English
Advice from an advisor to large global investors, "30% of assets should be invested in dollars”
Jangwon Hong for Maeil Business Newspaper
February 28, 2018
Interview with Ohad Topor, CEO of TCK Investment Management
"Korean investors tend to show a preference for holding assets in Korean currency which means they are not managing risk. They should increase their holdings in USD dollar to at least 30% of their assets.”
This is the advice of Ohad Topor, CEO of TCK Investment Management, who consults high net worth investors. A native of Israel, Mr. Topor has offices in London and Seoul. The company previously signed a Memorandum of Understanding with Samsung Life Insurance, and also provides alternative investment solutions and for high net worth individuals.
Howard Marks, Co-Chairman of Oaktree Capital, a global alternative investment management firm, is one of the co-founders of TCK Investments. The minimum amount of assets to entrust to TCK Investments is USD5million (approximately KRW5.4billion). TCK is an investment advisory firm for large domestic investors.
“Holding assets in foreign currency is a way to reduce long-term risk," Mr. Topor said. He noted that many Korean ultra-high-net-worth investors have a tendency to lock up their money in Korean currency which makes it difficult for them react to global issues. If the investor’s assets are diversified but only in domestic equities, fixed income, and real estate, then this investor is not able to effectively manage his portfolio when a big global event affecting markets takes place. Mr. Topor also added, “Investors should hold a minimum of 30% of assets in dollars as the dollar has a tendency to stay strong in times of global crises.”
He mentioned that “there is no best time to invest” and feels that the stock market still looks promising, although volatility has increased since the global stock market plummeted due to the US interest rate hike in February.
Mr. Topor also believes that investors should have “a habit of investing with a long-term view” after building a portfolio with good assets. “If one had invested in the US stock market at its peak just before the financial crisis in 2008, ten years later the investment would have doubled.” He added, “If investors are simply looking for the next hot stock then it will be difficult to become a wealthy investor.”
"The stock market has been shocked by the interest rate hike, but this is not the time to make a fundamental change in your investment portfolio,” and added, "When the economy faces an upswing, it is time to buy more stocks such as consumer staples," he said.